For many mixed martial arts fans, Nate Diaz represents the spirit of defiance, integrity, and authenticity. Once again, he’s made waves with his provocative moves. This date has been the focus of celebration and is widely regarded as a day of celebration for all things cannabis. Diaz’s criticism hits home. It’s a fantastic documentary that shines a light on hypocrisy, fighter pay, and how athlete rights are evolving in the digital age. Token ATH! Token ATH! is a podcast that closely tracks the crypto world. The retired boxer’s battle against the UFC offers a fascinating case study at the intersection of athletics, capital markets and self-determination.

Diaz was clear in his condemnation, calling the NFTs “bullshit.” His primary grievance stems from what he perceives as a glaring contradiction: the UFC profiting from cannabis-related promotions through NFTs while simultaneously penalizing fighters for cannabis use in the past. He fearlessly condemns the institution for its abrupt turnabout. To this day, he can’t get over fines and suspensions athletes like himself have suffered for cannabis use. In 2007, Diaz was suspended for six months after testing positive for marijuana. Yet today, the UFC is jumping on the bandwagon of cannabis culture and making millions in the process.

This isn't just about past grievances, though. Diaz targets the broader financial angle of UFC’s NFT push. He says that fighters earn just 50% of one UFC Strike NFT sale. That would mean the UFC is pocketing all revenue from these NFTs and not distributing it to fighters at all. This important accusation strikes at the very heart of a long-standing controversy over the merits of fighter compensation in the UFC. Technically speaking, UFC fighters have fought to earn between 16%-19% of revenue. By contrast, athletes in other big professional sports leagues make 2.5-3 times as much, taking home 47-50% of their respective leagues’ revenues. This disparity should deeply alarm us. It further indicates that the UFC’s move into the NFT space might just be another avenue to capitalize on fighters and boost profits.

The Shifting Sands of Cannabis Policy in MMA

The racial history behind marijuana-related penalties in MMA serves to complicate this debate further, there is still more smoke in the air. Similarly, for years, fighters would be slapped with heavy suspensions and fines for testing positive for cannabis. However, attitudes and policies have gradually shifted. In 2019, the UFC joined forces with Aurora Cannabis to research the use of CBD. This action signaled an intent to take a different approach on cannabis-related products. Hosted by the NFLPA x RFLCT, this strategic partnership sought to understand how CBD can help improve athletes’ health, recovery and wellness.

Then in July 2021, things suddenly jumped to light speed. To its credit, the Nevada State Athletic Commission announced it would no longer punish fighters for cannabis consumption. This ruling was a huge pivotal moment in the history of the sport’s traditional war on marijuana. Flash forward in September 2021 when the UFC surprised many with a significant announcement. Without any prior public input, they chose to take marijuana off their drug prohibition list altogether and justified that choice with historical evidence. This announcement was a significant victory for activists who had fought for years to see cannabis policy relaxed.

In fact, as of September 2023, the UFC was urging all divisions to stop testing for cannabis. This ruling cemented their departure from strict prohibition. These systematic changes are a testament to how much we’re learning about cannabis and its many benefits. What’s more, they point out how much social attitudes have changed on the use of marijuana. Diaz’s criticism exposes lingering bitterness over past penalties. Perhaps even more salient is drawing attention to the continued perception of hypocrisy in the UFC, despite these progressive policy changes.

Potential Benefits (and Concerns) for Diaz and Other Fighters

Diaz has called out the UFC’s NFT launch, he and other fighters could stand to benefit greatly. If UFC Strike NFTs work out as they seem, they’ll generate millions of dollars in revenue for Diaz. He’s in line to make 50% of each sale. This monthly revenue stream can ensure fighters’ long-term financial stability. More importantly, it empowers them to take control of their careers and achieve real independence.

Beyond direct revenue, the UFC's NFT launch may increase Nate Diaz's visibility and popularity, potentially leading to more lucrative endorsement deals and sponsorships. Diaz is one of the most recognizable and revered fighters in MMA. As the first major sports figure to embrace the NFT space, his participation could bring new fans and investors into the sport. The UFC's NFT launch may lead to a renewed interest in Nate Diaz's fighting career, potentially resulting in more fights and higher paydays. His sharp style and punk attitude resonate deeply with young people who feel unheard. This accomplishment, combined with his tenacity and personality, makes him a powerful ambassador for furthering the sport. In addition, the UFC's NFT launch may lead to an increase in Nate Diaz's merchandise sales, as fans may be more likely to purchase merchandise featuring his likeness and name.

There is a healthy amount of skepticism about the UFC’s motivations and its long history of underpayment fighters. When the UFC announced their intentions to join the NFT ecosystem, alarms began to sound. Many are rightly concerned that the organization will take advantage of its fighters once more in its pursuit of new profits. How the UFC’s NFT plans might affect its agreement with Flow. Next, let’s look at UFC’s NFT plans. Under the agreement, the UFC is not obligated to disclose any portion of revenue earned from the sale of NFTs depicting its fighters. This lack of transparency and potential for exploitation has fueled Diaz's criticism and sparked debate about the fairness of the UFC's revenue-sharing practices.

The Broader Implications for Athlete Rights and Digital Collectibles

Nate Diaz strongly opposes the UFC’s NFT launch. His stance underscores the growing battle between players and schools on usage of their likenesses and revenue sharing in the 21st century. The UFC's interest in NFTs is likely due to the success of the NBA's Top Shot NFT marketplace, which allows basketball fans to purchase video highlights from the league's history. Top Shots has been charging a 5% transaction fee on all sales in their own marketplace. This money goes back to be distributed between Top Shots, the NBA and the union of its players. The revenue-sharing model for the W has already proven successful, as it’s created great financial returns for the NBA and players in the league. You can bet the UFC is anxious to do that again.

The explosion of NFTs has brought a wealth of opportunity – and pitfalls – for athletes. On one hand, NFTs offer athletes increased financial opportunities and more ownership over their own digital likeness. On the other hand, athletes may face exploitation if organizations fail to fairly compensate them for the use of their likeness in NFTs. As the digital collectibles market continues to evolve, it is crucial for athletes to understand their rights and negotiate fair deals with organizations.

  • Pros:

    • New revenue streams for athletes.
    • Increased control over personal brand.
    • Potential for greater financial independence.

  • Cons:

    • Potential for exploitation by organizations.
    • Lack of transparency in revenue-sharing practices.
    • Uncertainty surrounding the long-term value of NFTs.

All things considered, Nate Diaz trashing the UFC’s 4/20 NFT drop is far more layered than it appears. It speaks to long-standing injustices, economic plight, and the progressive, digital zeitgeist of the changing rights of amateur athletes. As the world of sports and cryptocurrency increasingly intersect, these questions will become more pressing and important.